Inflation news from the United States has caused the price of bitcoin (BTC) is above $44,000 again, at least for a while. Data from the Consumer Price Index (CPI) show that the US inflation rate passed 7% in December, reaching its highest level since the 1980s. Not only bitcoin, but many others too cryptocurrencies responded positively to this news.
The numbers were released by the United States Bureau of Labor Statistics and showed a CPI of above 7% in December. The BTC price has fluctuated between $41,000 and $43,000 for a while. After the announcement, however, the $44,000 was tapped.
Prior to the announcement of the figures, there was already plenty of talk on Twitter about the possible figures. Lyn Alden, macroeconomic specialist and crypto fortune teller, was right with her prediction:
December CPI comes out tomorrow and has a decent shot at reaching 7%+ year-over-year.
But then unless monthly inflation accelerates from here, the year-over-year figure will likely peak within Q1 2022. pic.twitter.com/7hjA3ehAXI
— Lyn Alden (@LynAldenContact) January 11, 2022
Earlier today there was already a video by David van Ineveld published on Crypto Insiders, in which David discusses inflation. He also discusses the sectors that can benefit from this.
Has Bitcoin Hit Bottom?
Bitcoin and the rest of the crypto world is not off to a good start in the new year, but has bitcoin hit bottom? More and more analysts think so. Among other things, it looks at the Entity-Adjusted Dormancy Flow from analysis company Glassnode. Something that has happened rarely in the history of bitcoin, but the current state has always turned out to be an excellent one buy opportunity to be.
Dormancy flow buy signal on $ BTC, very rare, only six times in history pic.twitter.com/eNU5lY9sOH
— Zhu Su ???? (@zhusu) January 11, 2022
Moreover, reporting from the US Federal Reserve turned out well for bitcoin this time. Last week we saw another bitcoin crash when it became known that the Federal Reserve would take some shares off its balance sheet. This time it actually caused a price increase. Jerome Powell, chairman of the Federal Reserve, said that interest rates will remain low. The BTC rate shot up due to this, among other things.
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